An AST template specifically for licensed HMO properties — Houses in Multiple Occupation. Each tenant has their own agreement covering their room plus shared use of common areas, with the additional safeguards needed in licensed HMO settings.
What is an HMO?
A House in Multiple Occupation (HMO) is a property let to three or more tenants from different households who share facilities such as kitchen and bathroom. HMOs of five or more people require a mandatory HMO licence; smaller HMOs may need additional or selective licensing depending on the local authority.
The Housing Act 2004 sets the framework, but each council has its own licensing scheme on top. Always check with the local authority before letting any HMO.
Why a room-only AST is essential for HMOs
In a properly run HMO, each tenant should have their own AST covering their specific room. This matters because:
- Tenants can be evicted individually without affecting the others.
- Rent and deposit are recorded per-tenant.
- Each tenant's right-to-rent and deposit protection is documented separately.
- If one tenant breaches, the others are unaffected.
A single joint AST with multiple tenants creates "joint and several liability" — a tenant who behaves perfectly can find themselves liable for another tenant's rent arrears or damage. That works for student lets where parents are the financial backstop, but is rarely appropriate in working HMOs.
Additional HMO obligations beyond the AST
Running an HMO is not just about the tenancy paperwork. You must also:
- Hold an HMO licence (mandatory for 5+ tenants; additional licensing varies by council).
- Comply with fire safety regulations: smoke alarms, fire doors, escape routes.
- Maintain Gas Safety, EICR, and PAT testing records.
- Meet minimum room size standards (defined by the council and statute).
- Comply with refuse storage regulations.
- Meet council-specific HMO licence conditions.
What you still need to do
Per tenant, all standard AST requirements apply: deposit protection, EPC, gas and electrical safety, right-to-rent, Information Sheet, and How to Rent guide. Document everything separately for each room and tenant. Inventory the room AND the tenant's shared use of communal areas.